About Platinum
Platinum is a rare metal used mainly in diesel catalytic converters, industrial processes and jewellery, with growing interest from hydrogen fuel-cell technology. Supply is highly concentrated: South Africa produces the large majority of mined platinum.
What moves the platinum price
- Mine output and power or labour disruptions in South Africa and Russia.
- Auto-catalyst demand and the switch between platinum and palladium in gasoline engines.
- Jewellery demand, particularly in China.
- Investment flows and the US dollar.
Platinum and palladium: the substitution story
Platinum and palladium do similar jobs in catalytic converters. For years palladium was preferred for gasoline engines and platinum for diesel, but when palladium became far more expensive, carmakers began substituting platinum back into gasoline catalysts. That shift is slow, because each engine design must be re-certified, but it gives platinum a long-term demand tailwind whenever the price gap between the two metals is wide.
Deficits, stocks and the hydrogen angle
Industry groups have reported repeated annual supply deficits in recent years, drawing on above-ground stocks held in vaults in London, Zurich and New York. Watch lease rates: when borrowing physical platinum becomes expensive, the near-term market is tight. Over the longer run, demand for platinum in hydrogen electrolysers and fuel cells is a potential growth area, but its timing depends on policy support and project financing.
Contract specifications
| Benchmark future | NYMEX Platinum (PL), CME Group |
|---|---|
| Contract size | 50 troy ounces |
| Minimum tick | $0.10 per ounce = $5 per contract |
| Contract months | January, April, July, October |
| Settlement | Physical delivery |
| Spot reference | XPT/USD and the LBMA/LPPM platinum prices |
Specifications as published by the exchange; they can change, so confirm on the exchange website before trading.
Trading hours
Spot platinum trades over the counter during the global week. CME Globex trades almost around the clock: Sunday to Friday, 6:00 pm to 5:00 pm US Eastern Time, with a one-hour daily break.
Contract basics
NYMEX Platinum (PL) covers 50 troy ounces per contract and is quoted in US dollars per ounce.
Quote unit
USD per troy ounce. Hours and specifications can change; always confirm on the exchange's website, especially around holidays.
Platinum FAQ
What moves the price of platinum?
Mine output and power or labour disruptions in South Africa and Russia. Auto-catalyst demand and the switch between platinum and palladium in gasoline engines. Jewellery demand, particularly in China. Investment flows and the US dollar.
When does platinum trade?
Spot platinum trades over the counter during the global week. CME Globex trades almost around the clock: Sunday to Friday, 6:00 pm to 5:00 pm US Eastern Time, with a one-hour daily break.
What is the standard platinum contract?
NYMEX Platinum (PL) covers 50 troy ounces per contract and is quoted in US dollars per ounce.
Why is platinum cheaper than gold when it is rarer?
Price reflects demand as well as scarcity. Gold has huge investment and central-bank demand, while platinum depends mainly on industrial and automotive use, which has been weaker since diesel cars lost market share.
Which country produces the most platinum?
South Africa, which accounts for the large majority of mined supply, followed by Russia and Zimbabwe.